South Africa’s Public Investment Corporation (PIC), Africa’s biggest investment fund, said on Tuesday that without a 5 billion rand ($420 million) loan it advanced to cash-strapped utility Eskom, the utility would have defaulted on its existing debts with lenders.

The PIC, which holds a large chunk of government bonds and stakes in leading South African companies, said last week it had given the country’s sole power supplier the loan to fund the utility’s operations in February.